Invested in FEW stocks over the 6 months without profit.

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REITsteroid
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Joined: Thu May 13, 2021 3:54 am

Invested in FEW stocks over the 6 months without profit.

Post by REITsteroid »

Starting my investing journey, Heard about TESLA and put a load on funds. It's been over 6 months and still constantly losing money. During this process, I started working with PIEs (t212) allows you to do that. I added 5 REITs in pies thinking that would make the best bucks with auto-deposit set on weekly basis.

It's so bad how much have lost in the last couples month. Is there anything I'm doing wrong, please ?
delamer
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Joined: Tue Feb 08, 2011 6:13 pm

Re: Invested in FEW stocks over the 6 months without profit.

Post by delamer »

Yes, you are doing things wrong.

Read this and you’ll understand why: https://www.etf.com/docs/IfYouCan.pdf
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. | | Alexandre Dumas, fils
02nz
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Re: Invested in FEW stocks over the 6 months without profit.

Post by 02nz »

Welcome! Here's a good place for, well, getting started: https://www.bogleheads.org/wiki/Getting_started
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nisiprius
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Re: Invested in FEW stocks over the 6 months without profit.

Post by nisiprius »

Quick check. Here are the three most commonly suggested investments in this forum, followed by how much money each one would have made if you had put $10,000 into it six months ago, on 1/15/2021.

(VTI) Vanguard Total Stock Market Index ETF, +$1,389.35
(VXUS) Vanguard Total International Stock Index Fund, +$559.01
(BND) Vanguard Total Bond Market Index Fund, -$18.65 (loss)

What you are doing wrong is
a) taking a lot of risk and
b) not accepting the reality of that risk.

You are taking a lot of risk and expecting that you can be right all the time. That is, you give lip service to the idea that stocks are risky--risky for everybody else--but you don't truly believe they are risky for you.

The investments we most often recommend here track entire markets. That does not eliminate risk, but it does reduce it by a lot.

As you see, two out of three of our "standard" suggestions made money, they made a lot, while the one that lost money only lost a little. That is not going to happen over every six-month period, but it does confirm that dumb index ETFs will often outperform cleverly-selected individual stocks.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.
Topic Author
REITsteroid
Posts: 2
Joined: Thu May 13, 2021 3:54 am

Re: Invested in FEW stocks over the 6 months without profit.

Post by REITsteroid »

Thanks for all your contribution.
I've decided to move out of trading212 vendor platform to a more better with all listed index in their platform.

Is there is any other recommendations that would deem helpful.its all welcomed
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Quirkz
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Re: Invested in FEW stocks over the 6 months without profit.

Post by Quirkz »

Vanguard, Fidelity, and Schwab regularly get pretty high marks around here. Inexpensive, reliable, not scammy, and lots of options available.
achillesheel
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Re: Invested in FEW stocks over the 6 months without profit.

Post by achillesheel »

Quirkz wrote: Wed Jul 21, 2021 12:02 pm Vanguard, Fidelity, and Schwab regularly get pretty high marks around here. Inexpensive, reliable, not scammy, and lots of options available.
I second this. Stay away from Robinhood for now, too. You want to set a plan, and be on a platform that allows you to stick to it. Robinhood will encourage the opposite: lots of trading and risk-taking. It will make investing seem like a game... but it's not.
George Carlin: “You know how dumb the average person is? Just remember, half of us are even dumber than that.”
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calmaniac
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Re: Invested in FEW stocks over the 6 months without profit.

Post by calmaniac »

When we talk about investing, it is generally long-term investing. In general, investments that have good rewards have more risk. For stocks, this risk is most often experienced as ups and downs in the market.

There is a very high probability that an S&P 500 index fund will be up substantially given 5-10 years times. In contrast, over the short-term (6 months) it's a coin toss. Time smooths out those month-to-month ups and downs. Few investors expect to see a return in 6 months. Too short.

Buying TESLA and other shiny objects when they are at their shiniest is the opposite of what you want to do. You are "buying high".

I second the suggestion of https://www.etf.com/docs/IfYouCan.pdf
63 yo,1y til go part-time. AA 70/30: 30% S&P, 16% value, 14% intl, 10% EM, 30% short/int govt bonds. My mil pension + DW's now ≈60% of expenses. Taking SS @age 70--> pension+SS ≈100% of expenses.
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